B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG, ISIN DE0005203947 / WKN 520394) today announced its results for the first nine months of fiscal year 2018/19. These show the BRAIN Group generated revenues of EUR 27.9 million in the reporting period from 1 October 2018 to 30 June 2019, approximately 54% more than in the same period last year (EUR 18.1 million). Both the organic growth and the acquisition of the Biocatalysts Group in March 2018 contributed to this. Adjusted to exclude the acquisition, organic revenue growth amounted to 23.4% on a nine-month basis.

Total operating performance, i.e. revenues plus subsidies, other income and changes in inventories, rose in the reporting period by around 45% from EUR 20.5 million to EUR 29.7 million. All regional markets and business units (Nutrition & Health, Skin Care and Industrial Biosolutions) have shown improvement.

Strategic decisions pay off
"The acquisition of Biocatalysts was the right decision. As well as the additional revenue, the integration of the company will also strengthen organic growth in all areas," commented Dr. Jürgen Eck, CEO of BRAIN AG, on the nine-month figures. "Moreover, since the sale of Monteil, we have now been able to fully concentrate on B2B business."

Positive segment development
The product related BioIndustrial segment accounted for the largest share of growth, which can be attributed to significant organic growth in the enzymes and cosmetics business. The segment's total operating performance rose by 66.7% to EUR 20.8 million in the nine-month period. With adjusted EBITDA of EUR 2.3 million (previous year: EUR 0.2 million), the segment made a significant contribution to the positive development of consolidated earnings.

The BioScience segment, including industrial cooperations, also performed well. Total operating performance for the first nine months rose by 10.7% to EUR 9.0 million. This was due to both new contracts signed in the Tailor-Made-Solutions segment and to strategic product development partnerships. At EUR -4.4 million, adjusted EBITDA remained at the previous year's level.

Significant improvement in operating earnings
In addition to its strong business performance, BRAIN was also in the position to control costs. Cost of materials, personnel expenses and other operating expenses rose at a slower rate than revenue and total operating performance. This more than halved the negative Group EBITDA to EUR -2.3 million (previous year: EUR -5.2 million).

"In the first nine months of the financial year, we were able to showcase our potential very successfully and grow significantly faster than the market," says CFO Manfred Bender. "For the current fiscal year, we expect to achieve our goal of reaching double-digit growth in total operating performance and a significant improvement in EBITDA."

Key financials (first nine months of fiscal year 2018/19)

(in EUR million)

9M

9M

Change

2018/19

2017/18

%

Revenues

27.9

18.1

+54.0%

Total operating performance1

29.7

20.5

+44.6%

BioScience

9.0

8.1

+10.7%

BioIndustrial

20.8

12.4

+66.7%

Adjusted EBITDA2

-2.1

-4.1

+50.0%

EBITDA

-2.3

-5.2

+56.4%

Operating cash flow

-4.9

-6.2

+21.2%

30.06.2019

30.09.2018

Cash & cash equivalents

15.4

25.5

-

1 Revenues + change in inventories + other income including R&D grants
2 The reconciliation from adjusted to unadjusted EBITDA can be found in the quarterly statement for the period ended 30 June 2019

More detailed information on the financial results are available at www.brain-biotech.com/investors/financial-publications as part of the quarterly statement for the period ended 30 June 2019.

About BRAIN

B.R.A.I.N. Biotechnology Research and Information Network AG (BRAIN AG; ISIN DE0005203947 / WKN 520394) is one of Europe's leading technology companies in the field of industrial biotechnology. the core discipline of Bioeconomy. As such. BRAIN identifies previously untapped. efficient enzymes. microbial producer organisms or natural substances from complex biological systems that can be put to industrial use. The innovative solutions and products developed by help of this "Toolbox of Nature" are successfully applied in the chemistry. the cosmetics and the food industries. BRAIN's business model is based on two pillars. The BioScience segment comprises mainly of the research and development business with industrial partners (the "Tailor-Made Solutions" cooperation business). and the company's own research and development. The BioIndustrial segment consists mainly of the industrially scalable products business. Further information is available at www.brain-biotech.com .

This press release contains forward-looking statements. These statements reflect the current views. expectations. and assumptions of the management of BRAIN AG and are based on information currently available to the management. Forward-looking statements are not guarantees of future performance and involve known and unknown risks and uncertainties that could cause actual results. performance or events to differ materially from those expressed or implied in such statements. There are numerous factors which could influence the future performance by and future developments at BRAIN AG and the BRAIN group of companies. Such factors include. but are not limited to. changes in the general economic and competitive environment. risks associated with capital markets. currency exchange rate fluctuations. changes in international and national laws and regulations. in particular with respect to tax laws and regulations. and other factors. BRAIN AG does not undertake any obligation to update or revise any forward-looking statements.

30.08.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.

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